On July 30, 2024, SoFi Technologies Inc (SOFI, Financial) released its 8-K filing for the second quarter of 2024, reporting impressive financial results that surpassed analyst expectations. SoFi, a San Francisco-based financial services company, has expanded its offerings from student loan refinancing to include a wide range of financial products and services, aiming to be a comprehensive financial platform for its clients.
Performance Highlights
SoFi Technologies Inc (SOFI, Financial) reported total GAAP net revenue of $598.6 million for Q2 2024, a 20% increase from $498.0 million in the same period last year. The company also achieved a net income of $17.4 million, marking its third consecutive quarter of GAAP profitability. This compares to a net loss of $47.5 million in Q2 2023. Diluted earnings per share were $0.01, aligning with analyst estimates.
Financial Achievements
SoFi's adjusted net revenue for Q2 2024 was $597.0 million, up 22% from $488.8 million in the prior-year period. Adjusted EBITDA reached $137.9 million, an 80% increase from $76.8 million in Q2 2023, reflecting a 23% margin. Tangible book value grew by 30% year-over-year to $4.2 billion, or $3.92 per share.
Segment Performance
The Financial Services and Tech Platform segments contributed significantly to SoFi's growth, making up 45% of adjusted net revenue, up from 38% a year ago. These segments grew revenue by a combined 46% year-over-year. The Lending segment also showed resilience, with net interest income rising 20% year-over-year to $279.2 million.
Income Statement Summary
| Metric | Q2 2024 | Q2 2023 | % Change |
|---|---|---|---|
| Total Net Revenue | $598.6 million | $498.0 million | 20% |
| Net Income (Loss) | $17.4 million | $(47.5) million | n/m |
| Adjusted Net Revenue | $597.0 million | $488.8 million | 22% |
| Adjusted EBITDA | $137.9 million | $76.8 million | 80% |
Member and Product Growth
SoFi added over 643,000 new members in Q2 2024, bringing the total to nearly 8.8 million, a 41% increase from the prior year. Product additions were over 946,000, totaling nearly 12.8 million products, up 36% year-over-year. The Financial Services segment saw a 39% increase in total products to 11.0 million.
Commentary from Management
"We had an exceptional second quarter. Our relentless focus on product innovation and member growth across our portfolio of businesses not only drove strong results today, but we expect that they'll fuel financial growth for years to come," said Anthony Noto, CEO of SoFi Technologies Inc.
Analysis and Outlook
SoFi's strong performance in Q2 2024 highlights its ability to navigate a challenging macroeconomic environment while continuing to innovate and expand its product offerings. The company's diversified revenue streams and focus on member growth position it well for sustained profitability. Management has raised its full-year 2024 guidance, expecting adjusted net revenue of $2.425 to $2.465 billion and adjusted EBITDA of $605 to $615 million.
For more detailed financial information, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from SoFi Technologies Inc for further details.
